A real-estate investor who used the 1% rule to buy cash-flowing rentals says it has now 'vanished,' but he's sticking to his strategy

"The valuation of the property has gone up way more than what the rent has gone up. It's not commensurate," he said. And it's not just his portfolio of condos that is affected."

"The 1% rule suggests that to create positive cash flow, the monthly rent of your property should equal at least 1% of the purchase price. If not, the rule suggests you should keep searching for properties."

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